BOB KATTER, INDEPENDENT MP: If the Australian dollar stays where it is, then really, in Australia, manufacturing, agriculture, most of all tourism, are simply doomed.

PHILLIP LASKER: So Bob Katter wants interest rates slashed 2 per cent to bring down the dollar. But the Reserve Bank may not give him anything tomorrow.

WARREN HOGAN, ANZ CHIEF ECONOMIST: We still expect one more rate cut in the first half of this year, but we just don't think they're going to do it this week.

PHILLIP LASKER: It's because the ANZ sees an improving US economy, a eurozone still intact despite its problems and signs of resilience in the Australian jobs market.

Job ads rose a strong 6 per cent last month, the biggest rise in almost a year. It was driven by demand for from the resource rich regions of Queensland, Western Australia and the Northern Territory.

WARREN HOGAN: These figures today, the job ads figures, really show that the chance of a big rise in unemployment in this country is diminished somewhat.

PHILLIP LASKER: On other hand, Christmas retail sales numbers were subdued, despite last year's rate cuts. The rise of just 2.4 per cent in 2011 was the weakest growth in 50 years.

Food and cafe retailers were down during December, except for alcohol, but clothing and footwear did well and there was plenty of discounting. Some say this economy still needs extra rate cut protection.

MICHAEL BLYTHE, CBA CHIEF ECONOMIST: Just seeing the International Monetary Fund downgrade its global growth forecasts, and while the tone of the data out of the US and even Europe has been a little bit better, it's clearly still very weak and all the direction's there on the downside.

PHILLIP LASKER: The big lenders have been warning of rising funding costs for some time, preparing borrowers to accept smaller rate cuts than the RBA delivers.

MATTHEW JOHNSON, UBS RATES STRATEGIST: In terms of profitability there's an argument that they could legitimately hang on to some of the rate cut for themselves and not pass that on in full to their customers. Of course the counter-argument is that some businesses are less profitable since the GFC and perhaps banks should be as well.

PHILLIP LASKER: It'll all be part of the fireworks between the banks and the Government if the RBA lights the interest rate fuse.